US Tariff Hikes: Shifting Steel Trade Dynamics

Higher US tariffs on steel could shift global trade, exposing India to increased imports. SAIL Chairman Amarendu Prakash highlights potential impacts, including the viability of exports to Europe versus the US. India's outbound steel shipments remain steady due to limited quantities, but domestic measures urged.

The recent tariff hikes by the United States on steel and aluminum imports are poised to disrupt global trade flows, which could lead to India facing an increase in steel imports, according to Amarendu Prakash, Chairman of the Steel Authority of India Limited (SAIL).

According to Prakash, the administration's proposed 25% tariffs and reciprocal measures against trading partners like India could render traditional steel exports from Asian and European countries to the US unviable. This situation might redirect excess steel towards the Indian market.

Despite these concerns, Prakash indicated that India's steel exports to the US might not face significant challenges due to their relatively low volume. However, he emphasized the importance of implementing a safeguard duty to protect local industry, with the Directorate General of Trade Remedies advocating for a 12% provisional duty on selected steel imports.

(With inputs from agencies.)